How To Find The Perfect Car That Fits Within Your Budget
If you are in the market for a new car (whether it’s a brand-new model or you are upgrading your existing vehicle), you’ll appreciate that it’s a significant financial decision, so you need to approach it with a clear plan of action. In my latest guide, I will help you strike the right balance between what you desire and what you can afford.
Start With What You Really Need
Long before you head online to browse the latest vehicle listings or step foot onto a forecourt, it is advisable to take a step back and assess your ‘real’ needs.
- Do you require a car for a daily commute or just to run the occasional errands?
- Do you need extra space (such as for kids, luggage or pets)?
- Is fuel efficiency or performance more important?
It is also worth creating a list of non-negotiables and deal-breakers and then making a second list for the ‘nice to have’ extras.
Set A Realistic Budget
It is essential that you set a realistic budget – consider insurance, fuel, maintenance, road tax, and depreciation costs before proceeding (avoid the pitfall of “adding an extra couple of grand” because you’ve spotted something shiny in your headlights).
Explore Finance Options That Work for You
You will need to carefully deliberate over your finance options before you make a purchase (unless you are paying in full). The typical choices (if you like in the UK) are personal loans, hire purchase (HP), personal contract purchase (PCP) or cash. Each of these options has its pros and cons.
For example –
PCP may offer lower monthly payments, but you will not own the car unless you pay a final lump sum at the end of the term.
HP will eventually lead to ownership, but you will have to deal with higher monthly costs.
Personal loans allow you a wider amount of flexibility and can be far cheaper if you enjoy good credit. Incidentally, if you have a lower credit score, there are also options like bad credit finance, which are designed for those more complex financial situations.
Research Smarter, Not Harder
When you have found out your unique budget and how you plan to pay, you can then start shortlisting car makers and models that will meet your criteria. Check out trusted review sites and online car marketplaces for reliable information. Set your focus on several key factors, including upfront price, running costs, safety, reliability, and resale value.
Negotiate With Confidence
No matter how much you have fallen in love with that sparkly car you have spotted! Never pay the listed price. Whether you are buying new or used, there is always (and often substantially) room for negotiation.
A great tip is to shop around during quieter times of the month when many dealers are chasing their targets. Remember to ask about any discounts, trade-in deals, or extras (such as free servicing) that are available.
It is vital that you take the car out for a test drive and thoroughly inspect the vehicle (inside and out) in case you spot faults, damage or flaws in advance of making your purchase. Remember, if something doesn’t feel right, you are under no obligation to buy, so feel free to walk away.
Think Beyond The Forecourt
The overall cost of owning a car doesn’t just stop once you finally get the keys in your hand. You need to factor in long-term expenses such as insurance, servicing, MOTs and fuel costs.
Furthermore, as clean air zones and ULEZ fuels are becoming increasingly common, it makes sense to select a low-emission or compliant vehicle (although these models typically cost more initially).
If you have your heart set on an electric model (some of the latest designs are definitely eye-catching), consider getting an electric charging station installed at home to keep costs down.
Thanks for reading my latest car-based article; please share your thoughts in the comments section below.
